Bankruptcy from Poor Spending: Attorneys in Maui
A Debt-Free Life is in Reach with Bankruptcy
Are your finances out of control? Have years of poor spending habits and bad budgets led you to where you can’t even keep track of what bills are due and when? If this is you, then you should not feel any shame. You are not alone in this.
One of the most common causes of bankruptcy in the United States is improper budgeting and poor spending habits. As much as we would like to be financial geniuses when it comes to our budget, we all know too well that life doesn’t always let that happen.
We try to make our budgets perfect, but a sudden cost here and a change in spending there can lead us to be in a bad place financially. As we struggle with our budgets, it leads to a snowball effect where eventually there is so much debt you don’t know what to do about it. When this happens to you, it can feel like there is no escape from your debts, but that isn’t true. You have options. You have bankruptcy.
Bankruptcy Will Not Ruin Your Life
A misconception of bankruptcy is that it is going to ruin your life and leave you with nothing at all. This isn’t true. While bankruptcy is not going to come without consequences of its own, it is not something that is going to leave you with nothing to your name. It was created to help people who are deep in debt and give them a way out.
Some myths about bankruptcy include:
- You will never recover
- You can never buy a house again
- You will be left with nothing
None of these myths are true. Bankruptcy is by nature a recovery method. It takes all the debt to your name and erases it, leaving you with a second chance financially. Many of our clients here at Blake Goodman, PC, Attorney are able to buy houses while in the process of filing for bankruptcy, and while you may lose possession during bankruptcy, you will not be left with nothing.
Are You Near Bankruptcy? Call Blake Goodman, PC, Attorney
If you think that you may be nearing bankruptcy, then it is time to call Blake Goodman, PC, Attorney. Our firm can assist you during a time when you need help the most. If you’re worried that speaking with a lawyer will push you further into debt, then don’t be. Consultations are free.
While filing for Chapter 7 bankruptcy may seem scary, because of the potential liquidation of assets, you can make it out on the other end okay. Chapter 7 is the most common form of bankruptcy in the United States, and that means many people have applied for it and returned their life back to what it once was, but without debt.
When you file for Chapter 7 bankruptcy, your assets will be liquidated so you can pay off the debts to your name. This usually results in losing items such as:
- Extra houses
- Extra cars
- Valuable property
You won’t lose everything, however. Some of the items you keep when you are going through bankruptcy include:
- The equity in your home, up to about $25,150 per person filing
- Tools of the debtor’s trade or profession, up to a certain value
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Home equity (a portion)
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare) and Social Security
Once your assets have been liquidized and you have finished the bankruptcy process, you will earn the opportunity to start over — no debts to your name and a chance to budget more properly.
If you are filing for Chapter 13 bankruptcy due to poor spending, you are likely doing so because you just can’t keep track of your finances. For those of you who are filing Chapter 13, this is an opportunity to get everything organized.
When filing for Chapter 13, you will see all of your debts combined into a lump sum which you will then be able to pay off in monthly payments. Before you can file for this, however, you need to qualify for it.
To qualify for Chapter 13, a debtor must have Total Debts of less than $2.75M.
At Blake Goodman, PC, Attorney, we will be able to look at your financial situation and help you decide if you qualify for Chapter 13 bankruptcy, Chapter 7, or if you need bankruptcy at all. Schedule a consultation and we will discuss your situation together. The first consultation is FREE.